Tesla is making significant strides in ramping up Model Y production at its Gigafactory in Texas, with a renewed sense of urgency as the end of the U.S. federal EV tax credit approaches. According to industry expert Joe Tegtmeyer, Giga Texas has implemented a new production schedule for the Model Y, extending workdays by 1.5 hours and operating from Monday to Thursday, from 6:00 a.m. to 6:00 p.m. Additionally, the factory has been receiving new equipment deliveries, including a large robot being installed on the third-floor mezzanine of the main factory building, alongside upgrades in the paint shop and switchyard areas.
This production boost comes in the wake of the recent decision by the U.S. government to eliminate the $7,500 federal EV tax credit, effective September 30, 2025. With only a couple of months remaining before the credit expires, Tesla is gearing up for a potential surge in end-of-quarter sales as consumers rush to take advantage of the incentive before it disappears. In response to this impending deadline, Tesla has rolled out a series of promotions across the U.S., offering discounts on inventory vehicles, referral bonuses, and attractive financing rates, in a bid to stimulate demand ahead of the credit’s sunset.
Meanwhile, anticipation continues to build around Tesla’s much-anticipated affordable EV, which was reportedly spotted in public recently. This low-cost vehicle is expected to enter mass production in the fourth quarter of 2025, strategically poised to reignite consumer interest following the expiration of the federal tax credit. With Model Y production already scaling up and a new generation of vehicles on the horizon, Tesla is gearing up for a busy second half of the year.
As Tesla continues to innovate and expand its electric vehicle lineup, the company remains at the forefront of the automotive industry, driving towards a sustainable future. Stay tuned for more updates on Tesla’s latest developments and advancements in the world of electric vehicles.